Week 2 Flashcards
Marketing information and customer insights
When creating value for customers, marketers must obtain fresh and deep insights into their needs and wants.
Marketing information as ‘big data’
Big data is the large and complex data sets generated by today’s sophisticated information generation, collection, storage and analysis technologies.
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Most marketing managers are overloadedwith data and often overwhelmedby it.
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Big data presents companies and marketers with both big opportunities and challenges.
Big data opportunites
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Rich, timely customer insights
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Better understand the buying needsof our consumers and customers
Big data challenges
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Accessing and sifting through data is demanding and time consuming
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There is more informationthan a manager can digest
Do marketers need more information
Marketers do not need moreinformation; they need better information. And they need to make better useof the information they already have.
Marketing analytics
Marketing analytics involves tools and technologies used in making sound marketing decisions that lead to effective outcomes and return on marketing investment. This process requires data collection and analysis from all channels in the physical and digital arenas, including big data, over a time span.
Sources of data
– collected from their own databases – marketing research – web, mobile and social media tracking – customer transactions and engagements; and – other data sources.
Managing Marketing informaton
The real value of marketing research and information lies in how they are used –the customer insights it provides.
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Many companies are creating customer insights teams.
Customer insights groups collect customer and market information from a wide variety of sources:
– traditional marketing research studies – mingling with and observing consumers – monitoring consumer online conversations about the company and its products.
Marketing information and customer insights
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The challenge is that a customers’ needs and buying motives are often anything but obvious.
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Companies must design effective marketing information systems (MIS)that give managers the right information, in the right form, at the right time.
Marketing information system (MIS)
People and procedures dedicated to assessing information needs, developing the needed information and helping decision makers use the information to generate and validate actionable customer and market insights.
MIS Example
photo in favourites 31/7/18
Assessing marketing information needs
• The marketing information system also provide information to external partners, such as: – Suppliers – resellers – marketing services agencies. • A good MIS balances the information users would
Marketers can obtain the needed information from:
• Internal databases • Competitive marketing databases • Marketing research
Internal databases
Electronic collections of consumer and market information obtained from data sources within the company’s network.
Internal databases examples
photo in favourites 31/7/18
Competitive marketing intelligence
Systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Methods of collection include:
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Observation (mixing and mingling with customers as they use and talk about the product)
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Monitoring online consumer, marketplace and competitor activities (social media, website traffic and page visitation)
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Sentiment analysis (augmenting and automating the collection of the data)
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Trend analysis
Marketing research
Systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation. Market research gives marketers insight in customer motivations, purchase behavioursand satisfaction.
Marketing research can help assess:
– Market potential – Market share – Effectiveness of marketing mix activities (pricing, product, distribution and promotion activities).
Two approaches of market research
Qualitative
Quantitative
Qualitative
Involving a small number of individuals used to get qualitative data on a topic.
•Focus groups (traditional and online)
•In-depth one to one interviews (traditional and online)
Quantitative
Involving a large number of individuals* and is used to get quantitative data on a topic.
•Use of statistical application
* above 100 people
The 4 step process of marketing research
Defining the problem and research objectives
Developing the research plan for collecting information
Implementing the research plan –collecting and analysing the data
Interpreting and reporting the findings
Step 1: Defining the problem and research objectives
Often the hardest step in the research process.
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You may know that something in wrong, but don’t know the specific cause.
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Example: sales are declining, but you don’t know why
Step 1 define too broadly
step 2 defined too narrowly
Too much information may be collected, and the actual issue is not uncovered
Too little information is gathered resulting in the cause not being addressed
Exploratory
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Gathers preliminary information to help define the problem.
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Suggests hypotheses
Descriptive
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Describes marketing problems, situations or markets
Casual
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Test hypotheses about cause-and-effect relationships.
Step 2: Developing the research plan
Research objectives must be translated into specific information needs. • Example information needs: – Demographic – Characteristics and usage patterns of the broader population – Impact of the customer experience – Employee reactions to the proposed product or service – Forecasts
How is step 2 presented
Presented as a written proposal • The research plan outlines: – The management problem – Research objectives – Information to be obtained – Types of data needed (primary data or secondary data) – How the results will help the management decision making – Estimated research costs
Step 2 types of data
To meet the manager’s information needs, the research plan may call for gathering secondary data, primary data, or both.
Secondary data
Information that already exists somewhere, having been collected for another purpose. Secondary data is a good starting point and helps define research problems and objectives. Includes internal sources such as profit statements, government publications, commercial data such as market research services
Primary data
Information collected for the specific purpose at hand
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When collecting primary data, it must be:
– Relevant – Accurate – Current – Unbiased
Gathering the primary dataL 3 major research approaches
Observation
Survey
Experiment
Observational Research
Gathering primary data by observingrelevant people, actions and situations.
Survey Research
Gathering primary data by asking people questionsabout their knowledge, attitudes, preferences and buying behaviour.
Is the best suited for gathering descriptiveinformation.
Survey Research pros cons
Advantages: •Flexibility –across multiple situations •By phone or online Disadvantages: •Memory •Wanting to please / appear smarter •Lack of time
Experimental Research
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
Is the best suited for gathering causal information. The experiment tries to explain the cause and effect relationship.
Gathering primary data contact methods
Mail questionaries
Telephone interviewing
Personal interviewing
Online
Mail questionaries
Used to collect large amounts of information Advantages: •Low cost per respondent •May be more honest •No interviewer –reducing bias Disadvantages: •Not flexible –answering in a linear way •Can skip questions •Take longer to complete •Difficult to control who completes the survey
Telephone Interviewing
Used to collect large amounts of information Advantages: •Fast •Better flexibility over mail •Interviewers can explain difficult questions •Spend more time probing questions •Response rates are higher than mail Disadvantages: •Cost is higher •Not wanting to discuss personal questions •Interviewer bias •“do not call” and hang up
Personal Interviewing individual
Home, Shopping Mall Intercepts
Advantages:
•Flexible
•Trained interviewers guide and explain difficult questions
•Can show actual products
Disadvantages:
•Cost is three to four times higher than telephone
Personal Interviewing group
Focus Groups, Forums
Advantages:
•Moderator drives free and easy discussion –personal touch
•Good for explorative research and gaining insight
Disadvantages:
•Groups provide indicative opinion only
Online
Internet survey, panels, experiments, focus group
Advantages: •Speed •Low cost •More interactive and engaging •Able to reach “hard-to-reach” costumers •Higher response rates
Step 2 sampling plan
A sample is a segment of the population selected for marketing research to represent the population
Interested in
who, how many and how
Sampling unit
Who should be studied?
Sample size
How many people should be included?
Sampling procedure
How will the sample be selected?
Sampling procedure
How will the sample be selected?
Research instruments
Questionnaires or Surveys
Mechanical Instruments
Questionnaires or Surveys
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Most common
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Very flexible
Two different types of questions:
Closed-end questions
Open-end questions
Step 3: Implementing the research plan
• Put the plan into action • Collect, process and analyse the information • Data collection is carried out by the marketing research staff or by an outside company • Process and analyse the collected data
Step4: Interpreting and reporting the findings
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Don’t overwhelm managers with numbers and fancy statistical techniques
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Present important findings and insights
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Interpretation should not be left only to the researchers.
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While researchers may have research expertise, the marketing manager knows more about the problem and the decisions that must be made
Analysing and using marketing information
Customer relationship management (CRM): Systematic collation of data collected from multiple touch points, which is often combined with sophisticated analytical tools to enable a 3600view of individual customers
Uses and benefits of CRM
Integrate customer information
Database is easily interrogated
Provide deep insights for marketing decisions
Shopping rewards programs
Pinpoint high value customers, andtarget them efficiently
Cross-sell company’s products & services
Create offers tailored to specific customers
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Marketing information may be distributed via:
Intranets and extranets
Intranets:
Employee access information, reports, shared work documents etc.
Extranets:
External suppliers able to access account information etc
External suppliers able to access account information etc
A form of observational research that involves sending trained observers to watch and interact with consumers in their ‘natural habitats’.
